I recently had a customer who paid an $11,000 down payment in cash and then financed the balance due under the purchase agreement. Does the rule requiring us to report cash payments apply if the balance due is financed?
Yes. You are referring to the IRS Cash Reporting Requirements and they require any business accepting $10,000 or more in cash to file a Form 8300 with the IRS. Regardless of whether a payment is received as a down payment or as payment for the full cash price of a vehicle, you still need to fill out a Form 8300 since you received a cash payment of $10,000.
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